AZ: Regulators allow electric co-op to eliminate net metering


The Arizona Corporation Commission (ACC) has issued a decision in Trico Electric Cooperative’s 2015 rate case. Among other things, Trico had proposed eliminating net metering and replacing it with a system valuing exports by distributed generation (DG) systems at a lower wholesale rate, and establishing a quasi-demand-based rate component for residential and small commercial customers. The ACC’s decision approves a proposed settlement between Trico and Staff, but with some modifications.

Notably, in a departure from the recommended opinion and order, the decision eliminates net metering immediately in Trico service territory, although it allows existing customers to be grandfathered. The decision eliminates net metering and sets the rate for exports from DG systems at $0.077/kWh. It also establishes a second phase of the proceeding to apply the findings of the ACC’s value-of-solar proceeding, and to develop a formula and plan of administration for annual updates to the export credit rate.

The deadline for requests for rehearing of the decision is March 16